NASDAQ 100, Dow Jones, S&P 500 News: Treasury Yields, Durable Goods Data Shape Market Momentum

Highlights

• An eased 10-year Treasury yield and positive durable goods data uplift market sentiment.
• S&P 500 dips below 4,300, a first since June, amid rising rate concerns.
• Micron’s stocks rise by 1% as fourth-quarter earnings release approaches.
• Media stocks benefit as Hollywood writers conclude a lengthy strike.
• A historically volatile September could bleed into October for Wall Street.

Wall Street’s Resilient Rebound Amid Economic Data

The U.S. stock market appears poised for a rebound on the opening on Wednesday, with futures trading higher in the pre-market session following the previous session’s sharp decline.

At 13:35 GMT, the blue chip Dow Jones Industrial Average is trading 33659.36, up 40.48 or +0.12%. The benchmark S&P 500 Index is at 4289.36, up 15.83 or +0.37% and the tech-heavy Nasdaq 100 Index is trading 13127.72, up 64.11 or +0.49%.

Key to this sentiment has been the easing of the 10-year Treasury yield from its loftiest position since 2007 and the Commerce Department’s positive announcement: August’s durable goods orders surpassed expectations, up 0.2%.

Amidst concerns over rising rates pressuring stocks and potential prolonged tight monetary policies from the Federal Reserve, the S&P 500 had slipped beneath the significant 4,300 mark for the first time since June. Concurrently, the Dow experienced its most significant single-day tumble since March. This downturn came in light of missed economic expectations, including new home sales and consumer confidence metrics.

In the corporate world, Micron’s shares are up by 1% in premarket trading as they gear up for their fiscal fourth-quarter earnings release. Investors are on tenterhooks, wondering if global semiconductor demand can counteract Chinese export bans on chipmaking metals.

Meanwhile, Hollywood rejoices as writers end their protracted strike. Major media stocks, including Warner Bros. Discovery and Netflix, saw a modest pre-market rise after a new labor contract was finalized.

Short-Term Forecast

With Wall Street facing a historically “weak September,” volatility might extend into October. However, robust earnings reports could halt this market’s corrective phase.

Technical Analysis

The S&P 500 Index exhibits a cautious rebound, trading at 4284.84. Positioned marginally above its critical 200-Day moving average of 4196.21, it remains under the 50-Day moving average, set at 4463.20. This dynamic hints at a short-term bearish bias, but the presence near a significant support provides a potential buffer.

The 14-Day RSI, registering at 32.76, suggests the market is nearing oversold territory, indicating potential upward pressure in the near term.

While the index finds itself slightly above the trend line support of 4279.57, a breach below could signal further downside pressure. However, if upcoming market catalysts prove positive, we may witness a pivot towards the minor resistance of 4327.18.